Airtel 2015 Annual Report Download - page 332

Transformational Network
NotesWRFRQVROLGDWHGnjQDQFLDOVWDWHPHQWV
330 Annual Report 2015-16
E $VVHWV/LDELOLWLHVIRUZKLFKIDLUYDOXHLVGLVFORVHG
Particulars Fair value
hierarchy Valuation technique Inputs used
Financial assets
2WKHUǟQDQFLDODVVHWV Level 2 Discounted Cash Flow Prevailing interest rates to
GLVFRXQWIXWXUHFDVKǠRZV
Financial liabilities
Borrowings designated as hedging
LQVWUXPHQWVǟ[HGUDWH
- In hedge of net investment Level 2 Discounted Cash Flow 3UHYDLOLQJLQWHUHVWUDWHVLQPDUNHW
Future payouts
2WKHUERUURZLQJVǟ[HGUDWH Level 2 Discounted Cash Flow 3UHYDLOLQJLQWHUHVWUDWHVLQPDUNHW
Future payouts
Deferred payment liability Level 2 Discounted Cash Flow 3UHYDLOLQJLQWHUHVWUDWHVLQPDUNHW
Future payouts
2WKHUǟQDQFLDOOLDELOLWLHVGHVLJQDWHG
as hedging instruments
- In hedge of net investment Level 2 Discounted Cash Flow Prevailing interest rates to
GLVFRXQWIXWXUHFDVKǠRZV
2WKHUǟQDQFLDOOLDELOLWLHV Level 2 Discounted Cash Flow Prevailing interest rates to
GLVFRXQWIXWXUHFDVKǠRZV
Valuation process used for fair value measurements
FDWHJRULVHGZLWKLQOHYHORIWKHIDLUYDOXHKLHUDUFK\
7KH *URXS KDV HQWHUHG LQWR WHFKQRORJ\ RXWVRXUFLQJ
FRQWUDFWXQGHUZKLFKSD\RXWVDUHOLQNHGWRUHYHQXHGXULQJ
WKH FRQWUDFW SHULRG 7KH SRUWLRQ RI WKH SD\RXW SD\DEOH
DW VSRW UDWH RI IRUHLJQ FXUUHQF\ UHVXOWV LQ DQ HPEHGGHG
GHULYDWLYH 7KH VLJQLnjFDQW LQSXWV WR WKHYDOXDWLRQ PRGHO RI
WKHVHHPEHGGHGGHULYDWLYHVDUHIXWXUHUHYHQXHSURMHFWLRQV
DQGIRUHLJQH[FKDQJHIRUZDUGUDWHVRYHUWKHFRQWUDFWSHULRG
7KH UHYHQXH SURMHFWLRQV EHLQJ EDVHG RQ WKH UROOLQJ WHQ
\HDU njQDQFLDO SODQ DSSURYHG E\ PDQDJHPHQW FRQVWLWXWH
D VLJQLnjFDQW XQREVHUYDEOH LQSXW WR WKH YDOXDWLRQ WKHUHE\
UHVXOWLQJ LQ WKH HPEHGGHG GHULYDWLYH EHLQJ FODVVLnjHG DV
/HYHOLQWKHIDLUYDOXHKLHUDUFK\
7KH *URXS HQJDJHV H[WHUQDO LQGHSHQGHQW DQG TXDOLnjHG
YDOXHUVWRGHWHUPLQHWKHIDLUYDOXHRIWKH*URXSšVHPEHGGHG
GHULYDWLYHFDWHJRULVHGZLWKLQOHYHO7KHYDOXHRIHPEHGGHG
GHULYDWLYH LV WKH GLNjHUHQWLDO RI WKH SUHVHQW YDOXH RI IXWXUH
payouts on the reporting date, over that determined based
RQ WKH IRUZDUG UDWHV SUHYDLOLQJ DW WKH LQFHSWLRQ RI WKH
FRQWUDFW7KHSUHVHQWYDOXHLVFDOFXODWHGXVLQJDGLVFRXQWHG
FDVKǍRZPRGHO
Narrative description of sensitivity of fair value changes
to changes in unobservable inputs
7KHIDLUYDOXHRIHPEHGGHGGHULYDWLYHLVGLUHFWO\SURSRUWLRQDO
WRWKHH[SHFWHGIXWXUHSD\RXWVWRYHQGRUFRQVLGHUHGIRUWKH
SXUSRVHRIYDOXDWLRQRIWKHHPEHGGHGGHULYDWLYH,IIXWXUH
SD\RXWVWRYHQGRUZHUHWRLQFUHDVHGHFUHDVHE\ZLWKDOO
WKHRWKHUYDULDEOHVKHOGFRQVWDQWWKHIDLUYDOXHRIHPEHGGHG
GHULYDWLYHZRXOGLQFUHDVHGHFUHDVHE\
 5HFRQFLOLDWLRQRIIDLUYDOXHPHDVXUHPHQWVFDWHJRULVHGZLWKLQOHYHORIWKHIDLUYDOXHKLHUDUFK\Ş)LQDQFLDO
assets / (liabilities) (net)
(` Millions)
Particulars For the year ended
March 31, 2016
For the year ended
March 31, 2015
Opening balance  
Gain / (losses) recognised in consolidated income statement
(including settlements)*
5HFRJQLVHGLQǟQDQFHLQFRPHǟQDQFHFRVWV (352) (181)
- Recognised in exceptional items (net) (refer note 12 (i) d)  -
([FKDQJHGLNjHUHQFHRQWUDQVODWLRQRIIRUHLJQRSHUDWLRQUHFRJQLVHG
in OCI
14 (331)
Closing balance 51 
 2XWRIWKHVHJDLQVORVVHVJDLQRI`0QDQGORVVRI`0QUHODWHVWRDVVHWVOLDELOLWLHVKHOGDWWKHHQGRI0DUFKDQG0DUFK
respectively.